Barbados

Buyers Guide

Purchasers should always consult a solicitor. There are no restrictions on property purchases in Barbados by persons who are either non citizens or permanent residents, but non residents must ensure that all funds for the purchase of real estate are available from external sources. Funds must be registered with the Central Bank of Barbados and permission from the Exchange Control Authority obtained for a sale or property purchase.

Transaction Costs in Barbados

When a property is sold in Barbados all persons whether citizens or permanent residents are subject to a Property Transfer Tax of 10% plus approximately 1% stamp duty. However, the first $125,000 of the sale proceeds is exempt from Property Transfer Tax, provided there is a building on the land.

Conveyancing fees for both the seller and purchaser is approximately 1.5% to 2% of the sale price; the Estate Agents commission fees are normally 5% of the sale, both fees are subject to 15% VAT. It is important to note that a deposit of 10% is due for payment on the signing of the purchase agreement with the balance payable on completion of the purchase.

Legal Issues in Barbados

In Barbados property passes conveyance of title, evidenced by the recording of title deeds and certified survey plans at the registry of title. A purchaser will require a registered Barbadian Solicitor to search the register and establish title of the property prior to the competition of a sale. The parties sign a binding contract and the vendors Solicitor will hold the deposit until completion at which time the balance is paid. The title may be taken in an individuals name or through a corporate vehicle set up to own the property.

Town and Country Planning Approval

When building a property the Town and Country Planning office grants approval for the disposal of a vacant lot and acts as the agency which approves any building to be constructed or altered on a lot. Planning regulations include the property being set back from road, on the beach ora cliff-top, the height of the structure and the building density. Planning approval can usually take up to six months to be granted.

Operating Costs in Barbados

The owner of land in Barbados will have to pay an annual land tax, please contact us for this information.

Please note: The prime minister has announced Governments intention to put a cap on land tax rates. The main other operating costs would include insurance which is currently 0.4% for residences, however this will depend on characteristics of the building and the site. Other major costs would include metered utilities and any common assessments applicable to master planned communities.

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